Nov 24, 2015. /Lesprom Network/. RusForest AB concludes sale of the Arkhangelsk business segment. The company has received the final payment of $1.9 million from the sale of the Arkhangelsk business segment initiated in December 2014. The 4th and final payment in 2015 was subject to a reduction by RUB 25 million ($382 thousand), due to enforcement of certain warranties under the original sale-purchase agreement, as the company said in the press release received by Lesprom Network.

The reduction is accompanied by a waiver from the counter parties of all other warranties and potential claims, thereby finalizing completely the Arkhangelsk sale. The reduction of $382 thousand will negatively affect the results in 2015 in the same amount, as an adjustment of the previously recorded receivable from the asset sale.

Out of the total impact, $377 thousand (being the USD equivalent of RUB 25 million as per the exchange rate on 30 September 2015) will affect 3Q 2015 result, and the remaining $5 thousand will be recognised in 4Q 2015.

The 3rd and last but one payment of $1 million was received in 3Q 2015.

RusForest is a Swedish forestry company operating in Eastern Siberia. The Company controls long-term timber leases and utilizes these resources to produce a wide range of sawnwood products.